Wt Microelectronics Co., Ltd. · TWSE:3036
Wt Microelectronics — Q3 2018 Earnings Presentation
19 slides from Wt Microelectronics's earnings presentation, Nov 8, 2018
Slide 1: 2018 Third Quarter Investor Conference
2018 Third Quarter Investor Conference Presented by Cheryl Yang November 8, 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement WT’s forward-looking statements, which may include statements regarding its results of operations, financial condition or business prospects, are subject to significant risks and uncertainties and are based on WT’s current expectations. Actual results may differ materially from
Slide 3: Agenda
Agenda 1. Overview 2. Financial Update 3. Business Outlook 4. Questions and Answers 3
Slide 4: 1. Overview
1. Overview Strong secular growth with economies of scale A leading Asian semiconductor distributor, founded in 1993 and listed in 2000 (ticker: 3036 TT) Strategic focus on Asia region and Automotive & Internet of Things (IoT) applications 2017 revenues of NT$189bn, up 31% YoY 45 offices in Asia (30
Slide 5: 1. Overview: Offices Across Asia
1. Overview China Offices (30) Korea Office (1) Harbin Shenyang Dalian Offices Across Asia Seoul Beijing Qingdao Taiwan Offices (4) Zhengzhou Taipei, Headquarters Jinan Xian Hsinchu, R&D Ningbo Shanghai Taichung Wuxi Tainan Suzhou Kunshan South Asia Offices (10) Nanjing Hangzhou Wenzhou New Delhi, N
Slide 6: 1. Overview: Net Revenue History
1. Overview NR (Net Revenue) YoY=31% NT$B YoY=27% 200 189 180 CAGR(2011~2015)=12% 160 144 CAGR(2006~2010)=16% 140 120 114 108 100 88 80 80 71 64 60 47 39 41 40 30 34 21 20 10 14 5 9 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 6
Slide 7: 3Q18 result highlights
2. Financial Update 3Q18 result highlights Net revenue was above guidance, up 59% QoQ and 67% YoY Operating profit grew 39% QoQ and 54% YoY Net profit increased 59% QoQ and 29% YoY Return on net working capital improved 6.4ppt QoQ to 16.1% Operating cash cycle reduced 34 days QoQ to 49 days Return o
Slide 8: Statement of Comprehensive Income
2. Financial Update Statement of Comprehensive Income Unit: NT$M 3Q18 3Q18 2Q18 3Q17 Key accounts QoQ YoY Amount % Guidance Amount % Amount % Net Operating revenues 84,771 100.00% 74B~78B 53,248 100.00% 59.20% 50,833 100.00% 66.76% Gross profit 3,096 3.65% 3.7%~3.9% 2,560 4.81% -1.16ppt 2,245 4.42%
Slide 9: Statement of Comprehensive Income (YTD)
2. Financial Update Statement of Comprehensive Income Unit: NT$M Ytd18 Ytd17 Key accounts YoY Amount % Amount % Net Operating revenues 187,654 100.00% 129,575 100.00% 44.82% Gross profit 7,944 4.23% 5,965 4.60% -0.37ppt Operating expenses (3,971) -2.11% (3,130) -2.41% -0.3ppt Operating income 3,973
Slide 10: Balance Sheet
2. Financial Update Balance Sheet Unit: NT$M 3Q18 2Q18 3Q17 Key accounts Amount % Amount % Amount % Cash and cash equivalents 2,818 3 2,283 3 2,178 3 Accounts receivable 46,421 47 35,865 43 29,980 44 Inventory 42,894 43 38,500 46 30,140 44 Other current assets 2,706 2 2,321 2 1,962 3 Non-current ass
Slide 11: NR by Geography (Ship-to Destination)
2. Financial Update NR by Geography (Ship-to Destination) 0.4% 0.6% 0.5% 0.6% 0.5% 0.7% 0.5% 80 QoQ +73% 0.3% 100% 1.5% 2.3% 2.2% 2.0% 1.8% 2.6% 1.9% 70 2Q18 3.4% 3.0% 7.0% 5.7% 5.9% (Left) Revenue (NT$B) 8.1% 8.1% 8.5% 6.1% 5.5% 60 6.4% 6.0% vs. 7.1% 8.1% 7.9% 50 3Q18 9.2% 8.5% 80% (Right) 40 30 20
Slide 12: NR by Customer Base
2. Financial Update NR by Customer Base 100% 1.6% 1.7% 70 2.0% 2.2% 2.0% 2.8% 3.3% 1.9% QoQ +103% 2Q18 6.4% 3.4% 7.8% 9.3% 8.6% 8.8% 6.3% 6.6% 60 (Left) vs. Revenue (NT$B) 50 3Q18 80% 26.5% 40 (Right) 30.4% 34.1% QoQ +15% 33.1% 34.7% 30 36.5% 36.6% 38.5% 20 60% QoQ -18% 10 QoQ -8% 0 Taiwan China Kor
Slide 13: NR by Application
2. Financial Update NR by Application 50 2Q18 100% 3.0% 3.7% 4.0% 4.2% 3.4% 3.9% 2.5% QoQ 136% 4.3% 5.3% (Left) 6.2% 40 Revenue (NT$B) 7.2% 7.8% 6.6% 6.4% 7.3% 7.5% vs. 9.2% 3Q18 10.9% 11.4% 30 13.4% 14.9% 13.8% 13.5% 14.0% (Right) 80% QoQ +45% 20 QoQ +26% 15.9% 15.5% 17.2% QoQ +5% 10 QoQ +12% 17.7%
Slide 14: ROE vs. EPS
2. Financial Update ROE vs. EPS EPS 6.00 18.82% 19.24% 20% ROE% 16.03% 5.00 14.05% 15.28% 15% 13.42% 12.38% 4.00 12.88% 12.01% 10.67% 9.55% 3.00 11.56% 10% 2.00 5% 1.00 4.69% 0.00 0% 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 ITEM 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q
Slide 15: ROWC vs. NWC/Sales
2. Financial Update ROWC vs. NWC/Sales 0.30 NWC/Sales 25% ROWC 0.25 20% 0.20 16.13% 14.83% 15% 0.15 12.04% 8.72% 9.04% 10.91% 10.57% 8.81% 11.64% 11.66% 9.76% 10% 0.10 9.26% 5% 0.05 4.54% 0.00 0% 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 ITEM 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17
Slide 16: Operating Cash Cycle
2. Financial Update Operating Cash Cycle AR INV AP Operating cash cycle 100 93 85 80 83 80 72 73 67 68 65 61 60 60 52 49 40 20 0 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Turnover days 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 AR 43 58 78 72 57 58 59 50
Slide 17: 3. Business Outlook
3. Business Outlook We currently expect 4Q18 : Revenue : between NT$85 billion ~ NT$91 billion, at a forecast exchange rate of 30.8 NT Dollars to 1 US Dollar Revenue growth： between 0% ~ 7% QoQ and 42% ~ 52% YoY Gross profit margin : between 3.2% ~ 3.4% Operating profit margin : between 1.6% ~ 1.8%
Slide 18: Questions and Answers
nswers
Slide 19: Thank You !
Thank You ! WT Microelectronics Co., Ltd. Website : www.wtmec.com 19